Part A- Short answer questions
1. Write short notes on following:
a) Business Plans
b) Operating Profit
c) ASIC
d) AASB
e) Financial systems
2. Financial management sits at the intersection of two fields of accounting. Identify what are those two fields (of accounting) with the appropriate examples.
3. The matching principle matches all revenues with the expenses generated to earn those revenues during the accounting period. Explain how the matching principle relates to accrual accounting.
4. Identify some of the basic financial records that a company should keep as per the requirements of Corporations Act.
5. Explain Budgets, its types and steps involved in financial Budgeting in a company.
6. Describe the main areas of taxation legislation that applies in the areas of financial management.
7. The National Privacy principles regulate the way information is handled by the private sector organizations such as creditors and debt collectors. Write down the principles stated by the office of the Privacy commissioner regarding personal information.
Part B- Calculations
1. Below is the extract from the financial statement of ABC Company:
|
Accounts Receivable
|
Opening Balance
|
55000
|
|
|
|
Closing Balance
|
45000
|
|
|
Credit Sales
|
|
|
400000
|
|
|
$
|
|
Creditor (closing)
|
54200
|
|
Bills payable (closing)
|
5800
|
|
Total purchases
|
338000
|
|
Cash purchases
|
28500
|
|
Purchases returns
|
9500
|
|
Days of year
|
365
|
Calculate:
a. Debtors Ageing Ratio
b. From the following figures calculate average age of creditors and creditor turnover ratio:
c. Calculate inventory turnover and days inventories outstanding for ABC, Inc. based on the information given below:
2. Jelly Fences has sales of $250,000; the cost of fences for the year 2016 was $78,000 and the administration costs were $12,000.
The depreciation charge was $45,000 and the interest paid was $63,000.
What was the profit for the year and the operating cash flows for Outback Fences if the tax rate is 30%?
Required: Calculate Cash-flow for Jelly Fences for the year 2016.
5 references